NJ Supreme Court sides with Social Club in NJ Dram Shop Act action…

Feb 5th, 2009 | By Michael L. Saile, Jr., Esq. | Category: Blogs, DUI-DWI-DAI (Drunk Driving), New Jersey Injury Information

The NJ Licensed Alcoholic Beverage Server Fair Liability Act, also known as the “NJ Dram Shop Act” is the exclusive civil remedy for NJ personal injury and damage of property from the negligent service of alcoholic beverages by a NJ licensed alcoholic beverage server.

Under the NJ Dram Shop Act, a person who is personally injured or incurs property damage can recover if: (i) the alcoholic beverage server is negligent, (ii) the NJ personal injury or property damage was caused by the negligent service of the alcoholic beverages, and (iii) the NJ personal injury or property damage was a foreseeable consequence of the negligent service of the alcoholic beverages.

Under the NJ Dram Shop Act, a licensed alcoholic beverage server is only liable when it negligently serves alcohol to a visibly intoxicated person or a minor.

In this case, the licensed alcoholic beverage server was not a typical bar or restaurant, it was a social club with a self-service beer truck. Unfortunately, one of the club members left the party, got into a fatal New Jersey car accident, which killed four individuals. The driver’s blood alcohol level (BAC) was above the NJ legal limit for driving while intoxicated (NJ DWI).

A jury found that the social club did not negligently serve alcohol to an intoxicated person. The Plaintiff appealed arguing that there was a “loop hole” in the NJ Dram Shop Act. Because the beer truck was self-service, no person was actually serving the alcohol. The Plaintiff argued that under the NJ Dram Shop Act the social club had inherent duty to monitor the consumption of all alcohol.

The NJ Supreme Court ruled that the NJ Dram Shop Act did not require a duty of social club with self-service alcohol to monitor consumption. The NJ Supreme Court stated that it is up to the NJ legislature to make law and that the NJ Supreme Court will not impose additional duties into the clearly stated NJ Dram Shop Act.

Do you think the NJ legislature should make new law to close this apparent loop hole?

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  1. I think they should close the loophole. The word social club —- is that another name for mafia club? And while they are at it, …… ever go to a football giants game at the meadowlands?, people get there at 7am, and set up huge spreads, tables with 50 bottles of liquor on them, all self serve …… who is responsible for this? who is going to close that loophole too?

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